From The Grave

Indy Mac bank is poised to strike from the grave for bunches of billions of taxpayer dollars. Even as it is revealed that the banks former regulator allowed the bank to backdate a capital infusion by two months, the FDIC is poised to sell the bank to an incestuous brew of ex-Goldman Sachs executives now in charge of a private equity company and ex-Goldman Sachs executives currently in charge of TARP.

IndyMac Bank’s regulator should be investigated by Congress for letting the failed mortgage lender backdate a capital infusion two months before it collapsed, U.S. Representative Spencer Bachus said.The House Financial Services Committee should review the Office of Thrift Supervision’s decision allowing IndyMac to record a May 9 infusion of $18 million as first-quarter capital, Bachus, the panel’s ranking Republican, wrote in an e-mail statement this week. The move helped Pasadena, California-based IndyMac reach “well capitalized” status and escape regulatory restrictions, Treasury Department Inspector General Eric Thorson wrote in a Dec. 22 letter to U.S. Senator Charles Grassley, an Iowa Republican.

Such mismanagement is becoming commonplace among regulatory agencies these days, but this one was no small matter.

The backdating let IndyMac restore its risk-based capital ratio to the 10 percent “well-capitalized” minimum threshold in the first quarter. It also enabled the lender to avoid complying with a law that requires banks to get a Federal Deposit Insurance Corp. waiver to accept brokered deposits, Thorson wrote.

But eventually swarms of overdue mortgages caused a run on Indy Mac, forcing regulators move in and seize the bank in July. It was a short time ago, but at the time the $18 billion seizure was the second largest in US history.

Then bubbling like lava to the surface there came restless rumblings that the FDIC was seeking a buyer for its rotting corpse.

IndyMac Bank, the California mortgage lender seized by U.S. regulators five months ago, will be sold by the Federal Deposit Insurance Corp. before the end of this year, said a person familiar with the matter.The bank may be sold intact or split among multiple buyers, according to the person, who declined to be named because discussions aren’t public. Bids were due by Dec. 15. FDIC spokesman David Barr said today an announcement about IndyMac will be made by year-end. He declined to comment on a sale.

Intact or in pieces, dead or alive, just get this carcass out of here is the message Sheila Blair is sending. So, who is listening; PNC Financial Services Group and U.S. Bancorp earlier on, but who wins out; according to ml-implode.com it's a pair of former Goldman Sachs executives.

The FDIC’s most expensive bank failure, IndyMac, is slated to land in the hands of a private equity firm.

The winner is New York–based Dune Capital Management, founded by two ex-Goldman partners. Dune’s Co-CEO Dan Niedich was known as the "dean" at Goldman of investing the firm's capital in real estate. Chairman and Co-CEO Steve Mnuchin comes from a family of Goldman bankers. The firm was seeded in 2004 by legendary hedge fund trader George Soros.

A sale price for the transaction could not be determined.

With Goldman Sachs and big bucks involved you can bet a lot more than just a sale price in this deal will be murky. The sale price should be public because the proceeds will be used to replenish the FDIC fund according to Sheila Blair. But don't expect any more transparency on the sale of Indy Mac to Dune Capital than distributions to banks under TARP. Why, Because Dune’s financing for the deal will be provided by Oaktree Capital Management.

Oaktree, a well-known investor in distressed assets, had been among the firms that looked over IndyMac’s books in spring, when the bank was desperately seeking a cash infusion. IndyMac was seized by the government in July.

Now watch out nicely things just fall into place, financing provided by Oaktree capital management, a well-known vulture capitalists firm. Makes you wonder if Dune capital management is in distress and if so why is buying the decrepit remains Indy Mac? All the better to go after the TARP funds with? Well if you want a handout from the handers out, better have something to hand back.

This scam is simple and ou can see it coming b miles, Indie Mac gets bought off for the FDIC, Goldman Sachs alums get bankrolled for billions under TARP and the taxpayers get shafted again under more piles of mounting debt.

You will know this is more than speculation as soon as Dune Capital gets its first infusion under TARP. You will probably know when, but you may never know how much.